IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05455832.html

The Wage Inflation‐Unemployment Curve at the Macroeconomic Level

Author

Listed:
  • Antonia López‐villavicencio
  • Sophie Saglio

    (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8)

Abstract

Based on the reduced form New Keynesian Wage Phillips Curve, we estimate wage rigidity and indexation at the aggregate level in several advanced countries for the 1985–2014 period. We document that the wage setting process is heterogenous among our sample of countries: nominal wage rigidities are more important in the United States, while wage indexation is dominant in European Countries. We also present evidence that indexation to past inflation has decrease as inflation stabilizes at lower levels. In addition, our results suggest that wage rigidity is not linked to the institutional environment at the macroeconomic level. Finally, we show that there is significant time variation in the estimated coefficients on the implied equation that is usually not taken into account in the theoretical literature.

Suggested Citation

  • Antonia López‐villavicencio & Sophie Saglio, 2016. "The Wage Inflation‐Unemployment Curve at the Macroeconomic Level," Post-Print hal-05455832, HAL.
    • Handle: RePEc:hal:journl:hal-05455832
    DOI: 10.1111/obes.12139
    Note: View the original document on HAL open archive server: https://hal.science/hal-05455832v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05455832v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1111/obes.12139?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05455832. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.